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Amazon DSP Advertising Explained for Beginners | Ultimate Guide
66 Plays1 month ago
In this video, I simplify Amazon DSP (Demand-Side Platform) advertising for beginners, giving you a step-by-step guide to understanding how it works.
Whether you're new to programmatic advertising or looking to expand your Amazon advertising strategy, this video covers the basics of Amazon DSP, including how to use it to target audiences, retarget customers, and drive conversions. Learn how Amazon DSP can help you reach customers both on and off Amazon, and discover tips to maximize your advertising results. Interested in running Amazon DSP or want to learn more about it? Book a call with me here and let's see if it's the right fit for you : https://hubs.la/Q02-wGDY0
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Transcript
What is Amazon DSP?
00:00:00
Speaker
Welcome back to the Amazon Blueprint Podcast.
00:00:05
Speaker
So this is a question I get a lot from both big brands and small brands, as well as my own grandmother. What is Amazon DSP? Literally. So we're going to break this down. First and foremost, Amazon DSP is Amazon's demand side platform. Not to be confused with Amazon delivery service providers, which is very different.
Amazon DSP vs. PPC: Key Differences
00:00:22
Speaker
We're going to cover A to Z Amazon DSP in this video. So Amazon's demand-side platform is its programmatic marketing tool. It's basically the other side of the advertising coin, contrary to PPC. While PPC uses query-focused advertising predominantly, Amazon DSP uses audience, previous view and purchase behavior, as well as real-time targeting to show display ads, audio ads and video ads, both on and off Amazon. If you're familiar with sponsored display in the PPC world, Amazon DSPs, I like to look at it as sponsored display on steroids. It's a much more souped up technical version of sponsored display and has a lot more targeting capabilities as well as additional ad placement. So what are the benefits? For one, precise targeting. You can get really creative and precise with the way that you utilize Amazon DSP. Amazon has a ton of pre-created audiences that you
Targeting and Reach with Amazon DSP
00:01:08
Speaker
can tap into. And you also have basically all of the ASINs on Amazon at your disposal to create custom audiences based on views, purchases, similar product views, product searches. The targeting capabilities are essentially endless. The simplest way to utilize Amazon DSP and the most common is retargeting. So essentially you take your product, you create a custom audiences based on people that have viewed your product, you negate purchases, which is something that's unique to Amazon DSP,
00:01:32
Speaker
and you show them your product again to facilitate them to come back and buy. Another benefit to it is omni-channel reach. Typically, we start by serving ads on Amazon, but Amazon DSP has the ability to tap into third-party exchanges to serve ads off Amazon as well. So who is it for? Simply put, brands looking to scale. Amazon DSP has the unique capability of targeting the entire marketing funnel. It really just depends on how you use it. And you're not at the mercy of search volume to get your products in front of your target customers. If you are selling on Amazon,
00:01:59
Speaker
Amazon DSP is predominantly for brands that are already tapping into Amazon PPC. I never recommend launching DSP until you've launched PPC and scaled it to at least $10,000 to $20,000 in spend, and then it's often worth giving DSP a test.
Benefits for Established Brands
00:02:13
Speaker
One big use case is for brands that are looking to increase the lifetime value of your customers. Due to the custom audience creation capabilities within the DSP,
00:02:20
Speaker
you can either facilitate a repurchase of the same product that somebody has previously bought, or you can cross sell them to a different product within your portfolio. Also, if you're a brand that's looking to steal market share from your competitors, you can utilize the DSP to either target people that have viewed your competitors, people that have purchased from your competitors,
00:02:36
Speaker
or you can put your ads on their product detail pages in real time. This is a broader topic for another video, but you can even tap into Amazon DSP if you don't sell on Amazon or even if you're not an e-commerce brand.
Is Amazon DSP Right for Your Brand?
00:02:46
Speaker
You can utilize Amazon DSP to tap into Amazon's first party data to identify your customers and serve them display or video ads without having any relationship with Amazon at all. So who is Amazon DSP not for? One, brands that are new to Amazon. As I mentioned, you should already be tapping into Amazon PPC and you want at least one product with 100 reviews before this is something you test out.
00:03:06
Speaker
This is more of general advice, but I typically don't recommend brands that are doing less than $20,000 a month in revenue to tap
Maximizing Product Rankings with DSP
00:03:12
Speaker
into this. There are exceptions to this rule, but that's just a general rule of thumb to keep in mind. And the last one is people that are scared of trying new things. If you're scared of trying new things, then don't try this new thing. So it's some examples of what we've seen DSP do for brands firsthand. For one, by sending more traffic to your product detail pages, not only can you increase sales, but this can help to improve your organic rank.
00:03:31
Speaker
We've seen brands go from number 10 to number 1 in their category by tapping into DSP in the appropriate way. Typically speaking, when we roll out DSP for brands, one, we vet them to make sure that it's the right fit because we don't want to launch anything. It's not going to be successful. We usually see a return announcement anywhere from 4 to 1 to as high as 20 to 1.
00:03:49
Speaker
depending on the brand and the targeting strategy. In terms of how to get started on Amazon DSP, it's not as simple as launching a PPC campaign. You need to have access to an Amazon DSP seat, which you can do one of a few ways. You can do managed service through Amazon, which typically requires about $50,000 a month in ad spend.
How to Access Amazon DSP
00:04:05
Speaker
You can apply for your own seat, also requires about $50,000 a month in ad spend. or you can work with an agency who already has a seat, at which point there's no minimum. If you want to learn more about it or test it out, there's a link in the description. You can book a 30-minute call directly with me and I'll teach you all about it. If you don't feel like booking a call with me, for whatever reason, I won't take it personally, feel free to just drop a comment below and I'll be responding to all of them. See you next time.